Transportation
Intro [link]Gasoline Elasticity [link]
Electric Vehicles [link]
Electric Vehicles benefits slides from Erin Mansur [link]
Key Points
- Overview of emissions from the transportation sector.
- Comparison of pathways and policies to reduce emissions.
- Estimating demand elasticity difficult due to simultaneity of supply and demand.
- Instrumental variables can help.
- Review three papers using three different methods to estimate the same parameter.
- Electric vehicles
- Review of consumer demand and social benefits
Reading and response questions
Lecture 1
- Read Knittel (JEP 2012)
Response questions
- Compared to electricity markets, do you think it will be easier or harder to reduce CO2 emissions from transportation markets?
- Knittel discusses four channels through which petroleum consumption might be reduced. Which do you think will be the most important over the next decade?
Lecture 2
Read the following two articles.
- Hughes et al_2008
- Davis Kilian 2011 You can skip section 4, “VECTOR AUTOREGRESSIVE MODELS”
Response questions Both papers are trying to estimate the same parameter: the demand elasticity for gasoline.
- Why is it so hard to estimate the elasticity of demand for gasoline?
- Explain two of the empirical strategies attempted in these two articles, in your own words.
Lecture 3
Read the following two articles.
Response questions
- In your own words, explain what these two articles add to the articles we read for last class.
Lecture 4
We’re going to start our discussion of electric vehicles by looking and the drivers of demand. Please read the following three articles.
- The New York Times, Electric Cars Are Better for the Planet – and Often Your Budget, Too
- Max Auffhammer, “The EV revolution will be heavily subsidized”
- Lucas Davis, “An EV in every driveway?”
- builds on an earlier blog here (optional)
Response questions
- What do you think the key determinants of electric vehicle demand are?
- The New York Times article suggests that EVs often save consumers money. Yet they have very low market shares. What are some reasons for that?
- Who do you think benefits most from EV subsidies, and why? (A couple sentences each)
Lecture 5
Next we’re going to discuss the environmental benefits of EVs.
- Read this summary of an important article on the benefits of EV’s. Optional: If you are interested, the full paper is available here.
- Lucas Davis, “All charged up and no place to go”
Response questions
- We’re currently heavily subsidizing electric vehicle adoption at both the state and local level. Are these subsidies actually a good idea?
- These subsidies typically focus on the “extensive margin” (new car purchases), not on the “intensive margin” (driving). Is looking at EV sales growth alone a sufficient measure of progress towards reducing gasoline consumption? (A couple sentences each)